Sell Structured Insurance SettlementPosted on September 8th, 2010 William No comments
If you've been in the position where you were injured through the negligence of another party, you might have been compensated with a structured settlement. These are designed to pay out a living wage over a period of time to compensate for loss of wages caused by your injury. Unfortunately, you sometimes have an emergency need for that money immediately and can't wait for years to collect. In this case, you can actually sell your structured settlement to an investor, who will give you an immediate cash payment in exchange for a discount off of the value of the settlement.
Tip: avoid selling a structured settlement unless you desperately need the money. Sometimes you have a once in a lifetime opportunity that you really don't want to miss, or an emergency comes up that you can't fund any other way. Just remember: the company or investor that buys your structured settlement is doing so to make money; in the long run, you're giving up an asset for less than it's worth. Additionally, people who suddenly come into a large amount of money very often lose all or most of it within a few years due to financial mismanagement, general (and generous) overspending, acquiring expensive vices, falling prey to scammers, etc. Don't trade in your settlement just because it'd be nice to have the cash; have a concrete purpose in mind for the money!
Before attempting to sell your structured settlement, you'll need to check the laws in your states; many states have laws restricting the sale of structured settlements. Additionally, if you have a tax-free settlement, not only does selling it subject you to tax, but you may also be restricted by federal regulations. In some cases, the insurance company providing the settlement may even refuse to assign the payments to a third party. Also, be sure to get quotes from several places interested in the settlement, and make absolutely sure that the rights to the settlement do not fully pass to the buyer until you have also been paid in full! As with all complicated financial transactions, it is wise to consult a lawyer.
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